To what extent will does correlation and extrapolation assist Nintendo in forecasting sales?
To what extent will does correlation and extrapolation assist Nintendo in forecasting sales? (34 marks) Correlation is the relationship between two variables. Extrapolation is related to correlation, as it involves plotting a linear regression curve (also known as a line of best fit) which is based upon how two variables are correlated, and extending the line to predict future values. For Nintendo, a computer game and console manufacturing company, a common example would be the relationship between the level of advertising expenditure and the effect of this on sales of its products. The graph to the left shows a strong positive correlation between sales and advertising, meaning if Nintendo increases its advertising, they can expect to see an increase in sales. Because all values are close to the line, as advertising expenditure increases on the x-axis, sales on the y-axis increase proportionately. The regression line can be extended past the '80' figure (meaning £80million) to predict what sales will be like if they spend £100million or even £900million. The uses of such analysis to Nintendo are to an extent very valuable. By creating a scatter graph like the one above, Nintendo can spot trends and forecast future events. For example, they could estimate demand at a certain point in the coming year. One would expect demand to surge at Christmas time when people are
Explain how economists model how an increase in government expenditure can lead to a greater increase in national income.
Explain how economists model how an increase in government expenditure can lead to a greater increase in national income. Ans. National income is the total amount of wealth that accrues to the permanent residents of a country as a result of the production of goods and services within a country during the course of a year. It is important to measure national income because it shows whether the standard of living in a country is rising or falling and it can be used as a means of comparison between other countries. It is also useful to measure income against past income in the same country to see whether the economy is growing or declining. An increase in government expenditure is an injection in the circular flow on income. An injection is an addition to the circular flow of income. The diagram above illustrates some of the injections and leakages in the economy. It is however very important to find out exactly what will be the effect on the economy from an increase in injections. Economists do this by calculating the multiplier effect of the increase in the government expenditure on the economy. The multiplier indicates how many times that the injection of original spending circulates through a local economy. As a result of re-spending, it benefits the local people. The formula for calculating the multiplier effect is 1/(1-MPC). When there is an increase in the
The beach carrier case study evaluate different issues concerning a beach bag
Zaineb Sefiani MK 170 02/15/2005 Case Study Analysis The purpose of this case study is to evaluate different issues concerning a beach bag. Mary Ricci, an entrepreneur, has hired a consulting company to study this new product concept she is willing to introduce to the market. I have chosen to look at the strengths and than the weaknesses. At the end of this case study analysis, I will give some recommendations to help the company do better. The Strengths The first and the most important thing to point out is that Ricci is "creative, optimistic, enthusiastic, flexible, and motivated." I think that it is extremely important to have someone who is devoted and creative. Therefore, Ricci seems to have all the necessary skill to be a successful entrepreneur. Concerning the product, I think that it has some advantages. The first strength about this product is the number of pockets. I think it is important to have a lot of pockets in a beach bag because it allows one to be organized. Another advantage is that Ricci want to provide her customers with a variety of colors. The will allow her to satisfy potential customers that differ in tastes. This strategy will also give Ricci a competitive advantage in comparison to her competitors that offer at most three different colors. Finally, the online selling seems to be a good idea to start with regardless the disadvantages it might
4 P's of bajaj Pulsar
MARKETING MANAGEMENT BAJAJ PULSAR 4 P's By Aditya Sawant Danish Raj Manuja Imdad Ullah Noopur Gupta Tarun Khare Umang Seth Vasundhara Tyagi Group 8 Section I IILM Gurgaon PGP 10-12 4P's Of MARKETING: PRODUCT NAME: BAJAJ PULSAR .PRODUCT: PULSAR DTSi Before the introduction of the Pulsar, the Indian motorcycle market trend was towards fuel efficient, small capacity motorcycles (that formed the 80-125 cc class). The launch and success of Hero Honda CBZ in 1999 showed that there was demand for performance bikes. Bajaj took the cue from there on and launched the Pulsar twins in India on November 24, 2001. To capitalize on the growing market of performance and high end bikes Bajaj launched a series of models under the Brand name of Pulsar since its inception in 2001. 1.PRODUCT * Brand Name : Bajaj Pulsar DTS-SI Specification * All black engine * Aerodynamics Flaps * aggressive mask fairing with wolf eyed headlamp. * Black lit LCD digital speedometer. * Twin slashed LED tail lamp. Safety Features: * New radical clear lens headlamp with opto-prism multireflectors and halogen bulbs not only add-on in style but also illuminates the road brighter. * The multi reflector tail lamp along with rear number plate illuminator enables visibility from distance to others on the road that ensures safer night driving. * Brighter and wider front fork with
Do you learn better by yourself or with a teacher?
Do you learn better by yourself or with a teacher? Some people claim that they can learn better by themselves with the help of books and Internet which has many study materials, whereas having a teacher makes them more rely on his/her help. However, those who think this way do not realize several beneficial advantages of having a teacher. Here are a few reasons why I prefer the help of teachers. First, whenever we study and read the new topics or subjects, questions regarding those matters start to appear. At that moment, we need someone to answer those questions and tell us more details about them. From my own experience, when I was a high school student, I had a hard time understanding integral calculus. Although I spent a lot of time studying that particular subject, I couldn`t not only catch up with the required assignment but figure out how to solve the problems by myself. My math teacher pointed out my mistakes and suggested a systematic and better way to approach this subject. I finally got a better and deeper understanding of it. Without that help, this would either have taken too much time or never solved at all. Another reason why teachers are needed is because they not only convey knowledge to students but also give them a right direction. For example, most the students who have just entered into college tend to misuse their freedom e. g. parties, alcoholic drink,
How a business uses ICT to communicate and operate
C1 For one business describe the different methods of oral and written communication used and describe, with examples, how it uses ICT to communicate and operate. Ikea Oral Ikea use the tannoy system in their store in order to communicate with their employees. They use the tannoy to call the employees to meetings and it is also used to gather the employees in the morning for their daily huddle. These huddles are very useful, and appropriate as they are arranged in order to give out information to the employees, as well as to discuss problems from the previous day and to set targets to overcome these problems from occurring again. At these short meetings employees can voice their concerns about any possible problems and set backs in sales and get a feedback from others on how they could cope with these problems and stop them from occurring. A further example of oral communication in Ikea is the usage of mobile phones, which employees use to communicate with other employees and managers at the store. This is a very appropriate method of communication for the reason that it is helpful because it can be used in the case of an emergency or when you need to get hold of a fellow employee to discuss matters. Having a mobile phone is useful because you can get in touch with fellow employees without having to arrange a meeting. Written A written method of communication which
Suggest and justify any changes that each of your businesses could make to enable them to meet their aims and objectives more effectively
Suggest and justify any changes that each of your businesses could make to enable them to meet their aims and objectives more effectively Manchester Airport Manchester airport is the 3rd largest airport in the UK. They are always looking for new ways in which they can achieve this. One of their main objectives is to reduce costs to airlines. They could achieve this by incorporating new leisure facilities into the airport, e.g. cinema and bowling alley. This could help them achieve the objective as they would be making profit from the new facilities and so could lower the rent prices to the airlines, this could also help because more airlines would want to set up in Manchester airport due to lower renting cost, so the airport will have more customers, however the airport would have to spend money on building/creating space to build the new facilities. This would mean that the airport would loose money until the facilities have been built and are running and are making sufficient profits. As this would mean money loss, the airport could find another way of making money as it is being built. They could charge retailer more, this would mean taking a higher percentage of the retailer's profits. This would mean the airport would make more money but the retailers would make a decrease in profits. This could also cause retailers not wanting to set up in Manchester Airport as the
For this task I am going to compare three different types of loans which are provided by Halifax, NatWest and Alliance and Leicester. I have chosen to get a loan from these banks because they are reliable.
For this task I am going to compare three different types of loans which are provided by Halifax, NatWest and Alliance and Leicester. I have chosen to get a loan from these banks because they are reliable. Halifax Personal Loan Whether you're thinking of changing your car, making some home improvements or looking to simplify your finances into one manageable monthly payment, applying for a Halifax Personal Loan is quick and easy. Plus, you don't have to make any repayments for the first three months! Rate of Interest: 6.4% typical APR for loan over £7,000 Alliance and Leicester Personal Loan Alliance and Leicester lets you borrow an amount of money between £5,000 -£20000 with an interest rate of 6.1%. It also lets you take loans for up to 5 years with low, fixed monthly payments. NatWest Personal Loan NatWest offer a selection of loan products tailored to meet our customers' varying needs. So, whether you're looking to buy a new car or conservatory, need a financial boost during your studies or require a helping hand as a graduate, they're there to help. Their rate for fixed-rate personal loans of £10,000 or more is just 7.4% APR typical. I have chosen to take up a loan from Alliance and Leicester because they have the lowest interest rate of the three, which means I won't have to pay as much interest as I would to NatWest or Halifax. By choosing Alliance and
Business Case Study - Hormaz
Business case study Hozmallo Pumps Hozmallo Pumps is a private limited company located in India, that manufactures and distributes high quality (producer good) water pumps for buildings all around the country. Cyrus Polpet started the company 71 years ago, but now his son, Armand is taking over as CEO. Since the last 2 years, sales of the business have been rapidly decreasing resulting in very low profits (fig. 1.1) mainly due to the soaring inflation in India. Furthermore, the financial strength of Hozmallo Pumps has not been good. After calculating, the Current ratio of the business is 0.98. Armand found his fathers Budgets for the business (fig. 1.2). Many other problems have occurred in the business too over the last 2 years. Young and ambitious, Armand has set certain goals for the future to improve Hozmallo Pumps: > Reduce costs > Increase profits > Spread risk of the business > Increase market share > Expand into new countries Fig. 1.1 Armand wants to purchase the new 'Pumpmaster 3000' to reduce costs and increase output, but is finding it difficult to pull out $5,500 from the business. Also, he wants to expand the business operations into the middle-eastern market. Armand found that Oman would be a good country to expand into for various reasons after carrying out market research. Data collected: * Many clients willing to buy product * Competitive
Section 2 - Marketing To make a successful business we needed to complete a number of marketing tasks to research into price, place and promotion. The marketing director was Charlie, who with help from the team researched thoroughly into each of these three subjects. At first the group's idea for a business was to make magnets and sell them in school. Many other ideas were considered, including a football tournament, fair games in the hall and other plans. We were aiming at the target market of lower school, as we were going to sell the magnets on the premises. We thought that the younger students would prefer the product than the older ones, and so needed to plan the product to attract their attention. Also, our market research showed there was more females than males interested, shown in the chart. We decided upon this idea for a number of reasons, including that we could not get permission to use the hall for other events. Furthermore, magnets would be a lot cheaper to make - consequently we could hopefully make more money. We conducted a small amount of primary and secondary research, but probably should have completed more, although the research we used was relatively useful to help us target the product. Primary research is research conducted by the company itself, whereas secondary research is taken from another source that has completed it. The primary research we